IATA: Oman’s airlines to suffer revenue losses of $724 mn in 2020

Oman's aviation industry could see 4.3 million fewer passengers in 2020

International Finance Business Desk

Airlines in Oman could lose revenues of around $724 million due to the lockdown caused by the coronavirus pandemic, according to the International Air Transport Association (IATA).

With the impact of the coronavirus deteriorating in the Middle East, IATA has renewed its call for government intervention for the aviation industry.

The association predicts that the aviation industry in the Middle East and North African (MENA) region could lose revenue of around $24 billion due to the coronavirus pandemic. The figure is $5 billion higher than the revenue loss predicted by IATA during the start of this month.

IATA also revealed that Oman’s aviation industry could see 4.3 million fewer passengers in 2020. This could inversely result in 51,500 job losses in the sultanate’s aviation industry.

For the whole region, job losses in aviation and related industries could grow to 1.2 million. Around 400,000 of the cuts will be in the UAE’s aviation sector alone.

Muhammad al Bakri, IATA’s regional vice-president for Africa and the Middle East told the media, “Airlines in the Middle East continue to be battered by the impact of COVID-19. Passenger traffic has all but ground to a halt and revenue streams have evaporated. No amount of cost-cutting will save airlines from a liquidity crisis. The collapse of air transport will have devastating effects on countries’ economies and jobs. And in a region where aviation is a key pillar of many nations’ economies the effect will be much worse. Direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses.”